MSEDCL wont take coercive action against Lodha Group

Lodha had approached HC against a notice issued by MSEDCL on September 20 for payment of the bill for a period between February 1,2009,and August 10,2010.

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Maharashtra State Electricity Distribution Company Limited (MSEDCL) told Bombay High Court (HC) on Thursday it would not take coersive action against Lodha Group for allegedly not paying a supplementary electricity bill of Rs 3.24 crore incurred by iThink,an information technology (IT) park constructed by the developer at Kanjurmarg.

Lodha had approached HC against a notice issued by MSEDCL on September 20 for payment of the bill for a period between February 1,2009,and August 10,2010.

MSEDCL said the company did not have a letter of intent (LoI) from the directorate of industries to set up the park in the said period and as such,it was not eligible for concessions in power tariff offered to such facilities in Maharashtra.

The developer countered that the park had been constructed in accordance with the state IT and IT-enabled services policy,under which it was entitled to electricity at industrial rate,which is lower than the commercial rate.

Lodha said LoI issued to it was initially valid only up to August 2009,but it was extended by August 2010 after obtaining permanent registration from the directorate of industries. Therefore,the developer said,there was no reason for MSEDCL to demand enhanced electricity charges.

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